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VW Considers Producing in US

German automaker Volkswagen is considering starting up production in the United States because of the weakness of the dollar, VW commercial director Georg Flandorfer said in an interview. So far, a majority of VW cars for the US market are produced in Mexico. "We are considering the possibility of producing cars in the United States that for the most part will be sold there," he told the
Frankfurter Allgemeine Zeitung newspaper, adding that the Pike's Peak SUV of VW subsidiary Audi was a possible candidate for US production. Given the weakness of the dollar against the euro, which for European firms lowers the cost of dollar-denominated expenses, it would be "negligent" not to explore such a step, he added. VW, Europe's biggest carmaker, has traditionally been less active in North America than its German rivals. According to reports, a VW production plant in the US would likely lead to the closure of a European factory, with a facility in Brussels most threatened to be closed.